PAYMENTS
a key differentiator for those payments providers that succeed and those that don ’ t .
One such technology with gamechanging potential to transform payments is , of course , blockchain technology . For De Montessus , the potential of blockchain is tremendous . He asserts : “ Its decentralised , secure and programmable nature opens the door to many potential benefits , including enhanced transparency , reduced transaction costs , faster transaction settlement and programmability .
“ In particular , smart contracts on blockchain platforms can automate complex payment processes and the open networkbased approach can reduce the need for intermediaries .
“ Additionally , blockchain ’ s potential to tokenise various financial and nonfinancial assets opens new possibilities for fractional ownership and innovative payment and value delivery models .”
While the potential for blockchain is there , for now , barriers remain to its wider adoption , including scalability issues and a fragmented regulatory framework .
However , from De Montessus ’ perspective , blockchain “ continues to hold the promise of ushering in a new era of further efficiency , trust and innovation in payments .”
For providers , the key is to be ready for when blockchain technology starts spreading across the payments landscape more widely .
“Smart contracts on blockchain platforms can automate complex payment processes ”
GABRIEL DE MONTESSUS HEAD OF GLOBAL ENTERPRISE , WORLDPAY
Mitigating fraud risk While meeting the needs of end-users with flexible payments solutions and providing merchants with seamless integration processes may be front of mind for many payments providers , today the biggest challenge comes in mitigating the rising risk of fraud .
As payments providers leverage the latest technology to enhance their offerings , this same technology is opening new avenues which can be utilised by fraudsters to attack .
It ’ s no wonder Johan Gerber , EVP Security and Cyber Innovation at Mastercard , says fraudsters are “ using technology in more innovative and sophisticated ways to trick consumers .”
The problem is growing , with global e-commerce fraud losses expected to top US $ 48bn in 2023 .
Indeed , as Olbe notes : “ The mainstream use of generative AI has changed the game . Use of deepfakes is just another new tool fraudsters can use against individuals as well as businesses .”
102 April 2024